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07-05-2012, 03:13 PM
Although I am happy to collect regular dividend, when I noted the share issue expense of $75k just to collect $1mil from the scrip dividend scheme, I am not too pleased.
With cash and cash equivalents of $27m, is there a need for the scrip dividend, where shareholders end up with odd lots at the expense of $75k?
Considering that profitability (FY12:$14.6m, FY11:$10.7m) was enhanced by :
a) A reduction of $1m from depreciation expense due to change in accounting policy.
b) Write-back of tax provisions of a subsidiary (about $3m?)
The result could have been worse than last financial year.
Lets hope going forward, the full 12 months of contribution from Premier Group will bring stronger performance.
With cash and cash equivalents of $27m, is there a need for the scrip dividend, where shareholders end up with odd lots at the expense of $75k?
Considering that profitability (FY12:$14.6m, FY11:$10.7m) was enhanced by :
a) A reduction of $1m from depreciation expense due to change in accounting policy.
b) Write-back of tax provisions of a subsidiary (about $3m?)
The result could have been worse than last financial year.
Lets hope going forward, the full 12 months of contribution from Premier Group will bring stronger performance.